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Glenfarne Group Announces Major Initiatives for Its Affiliate Alder Midstream

NEW YORK--(BUSINESS WIRE)--

Alder Midstream to focus on value-added natural gas gathering and processing, the LNG value chain, and stranded gas infrastructure

Glenfarne Group, LLC ("Glenfarne"), a developer, owner-operator and industrial manager of energy and infrastructure assets, announced a number of important new initiatives for Alder Midstream, LLC (“Alder Midstream” or “Alder”), its midstream infrastructure affiliate focused on building, owning and operating midstream assets in the investment-grade Americas. Its three sub-sectors of focus are value-added natural gas gathering and processing, the liquefied natural gas (“LNG”) value chain, and stranded gas infrastructure, including gas-to-liquids. The business is dedicated to deep value creation through developing, enhancing, repositioning and overhauling assets in both mainstream and overlooked market niches.

Alder Midstream is pleased to announce it closed the acquisition of IACX Energy LLC (“IACX”), a value-added natural gas gathering and processing business, from funds managed by Houston, Texas-based midstream energy private equity firm Haddington Ventures, LLC. Headquartered in Dallas, Texas, IACX operates three gathering and processing systems focused on natural gas, natural gas liquids and helium across the Mid-Continent region and New Mexico. The business features six processing plants and over 4,000 miles of gathering pipelines, inclusive of a bolt-on acquisition that IACX completed concurrent with the purchase by Alder. The IACX business will continue to be led by CEO Rex Canon, who brings nearly three decades of senior executive experience in the energy industry, including deep expertise across natural gas gathering and processing in the Americas.

Alder Midstream is also the majority owner and Managing Member of Texas LNG Brownsville, LLC (“Texas LNG”), a $3.5 billion late-stage LNG export development project in Brownsville, Texas. Alder Midstream is pleased to announce that Texas LNG received authorization from the Federal Energy Regulatory Commission (FERC) on November 21, 2019 to site, construct and operate an LNG export facility along the Brownsville Ship Channel in Brownsville, Texas. FERC’s authorization is a crucial step in the environmental review process, in which FERC considered publicly available data, federal and state agency input, stakeholders’ comments, and extensive engineering, safety, and design information. Texas LNG seeks to supply the abundance of Permian gas to customers globally and is strategically located at one of the closest ports to the Panama Canal. Texas LNG has export permit capacity up to 4 MTA (million tonnes per annum) and has signed detailed non-binding term sheets with state-owned and private enterprise customers from Asia and Europe for cumulative total volumes exceeding 2 MTA. Marketing of the remaining capacity is underway. Texas LNG leadership includes co-Founders Vivek Chandra and Langtry Meyer, who collectively bring over 50 years of experience in the international energy markets.

Midstream Infrastructure

According to the 2018 Interstate Natural Gas Association of America (INGAA) Foundation, Inc. report on “North America Midstream Infrastructure through 2035,” approximately $900 billion of greenfield infrastructure capital expenditures are required to capitalize on the U.S.’s growing natural gas production and meet global demand through 2035. Demand for natural gas is driven by the transition away from coal, the resurgence of the petrochemical industry, and the need for power generation assets to support grid stability in increasingly renewable-reliant grids. While new supply basins continue to emerge, the industry requires additional infrastructure across the supply chain to ensure demand is met.

“As global energy demand grows with emerging technologies, clean-burning natural gas is expected to represent nearly half of new energy consumption over the next several decades, and demand for natural gas liquids and helium is expected to remain high as well,” said Brendan Duval, Founder and Managing Partner of Glenfarne Group. “Alder Midstream is focused on improving existing gas infrastructure assets and constructing new projects to facilitate gas flow globally.”

Alex Bucher, who serves as Executive Vice Chairman of Alder Midstream, provides additional strategic guidance and operational leadership. Mr. Bucher’s career spans three decades as a CEO and senior executive in the natural gas industry supporting the substantial growth of companies including Eagle Rock Energy, Enbridge, and Dynegy.

“The Alder Midstream platform has a robust pipeline of additional projects across North America, and I’m looking forward to working with Glenfarne, Texas LNG and IACX to execute on these growth opportunities,” said Mr. Bucher.

About Glenfarne Group

Glenfarne is a privately held energy and infrastructure development and management firm based in New York City with offices in Panama City, Panama; Santiago, Chile; Bogota, Colombia and Houston, Texas. Glenfarne's seasoned executives, asset managers and operators develop, acquire, manage and operate energy and infrastructure assets throughout North and South America. For more information, please visit www.glenfarnegroup.com.

About Alder Midstream

Alder Midstream builds, owns and operates midstream infrastructure assets in the investment-grade Americas, focusing on value-added natural gas gathering and processing, the LNG value chain, and stranded gas infrastructure, including gas-to-liquids. Its subsidiaries include IACX Energy, a value-added natural gas gathering and processing business; and Texas LNG, an LNG export business. Alder Midstream, including its affiliates and subsidiaries, is supported by a team of over 100 people. Alder Midstream maintains offices and assets in the United States and is part of the Glenfarne Group, LLC family of companies.

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